Tech giants offer ideas on charging readers online

ByABC News
September 12, 2009, 5:23 PM

NEW YORK -- Some of the world's most prominent technology companies are offering suggestions to publishers on how they can charge readers for news online.

IBM , Microsoft, Oracle and Google a company some newspapers blame for helping dig their financial hole responded to a request by the Newspaper Association of America for proposals on ways to easily charge for news on the Web.

But building the infrastructure for charging readers is one part of the equation. The other part looks more challenging: getting publishers to make the leap and stop giving news out for free on the Web.

Randy Bennett, the senior vice president of business development at the newspaper association, said his group initiated the process after a meeting of publishers in May near Chicago. A report that was posted online Wednesday by the Nieman Journalism Lab at Harvard University includes 11 different responses from technology companies.

Bennett said the trade group wanted to give newspapers options, and will not recommend one proposal over the others.

Google's proposal may be the most eyebrow raising, if only because the company which aggregates thousands of articles from media outlets on its news pages is so closely associated with the freewheeling ethos of an open Internet.

"Google believes that an open Web benefits all users and publishers," the company writes in its proposal. "However, 'open' need not mean free."

Google proposed offering news organizations a version of its Google Checkout system, which is used for processing online payments. It would give readers a place to sign in to an account and then pay for media from a variety of sources without having to punch in their information over and over. And the company says it could offer publishers several pay methods, from basic subscriptions to so-called "micropayments" on a per-article basis.

Along with the technology heavyweights offering ideas are tiny start-ups.

CircLabs, run by just four people and incubated at the Missouri School of Journalism, is developing a program that would feed news from different sources into a bar across the top of Web browsers. Martin Langeveld, the company's executive vice president, said the application will offer both targeted advertising and the option of charging. (Langeveld said the company has seed money from The Associated Press. AP spokesman Paul Colford said the news cooperative does not disclose which ventures it invests in.)